Interview with David Verrill

Jul 5

JULY 5, 2024 | 00:43 | Episode 23

David Verrill and the Angel investing model and process for early stage financings

In this conversation, Jothy Rosenberg interviews David Verrill about angel investing in startups. They discuss the role of angels, the evolution of angel investing, and the benefits of a fund structure. They also touch on the importance of supporting first-time CEOs and the criteria for making successful investments. David shares his passion for sports and spending time with family, and Jothy reflects on the importance of grit in the startup world.

ABOUT MY GUEST

Founder and Managing Director, Hub Angel Investment Group, LLC

Chairman Emeritus, Angel Capital Association

David’s professional career began as a research scientist at the Center for Blood Research in Boston focusing on the MHC of genetically engineered mice. After receiving his master's degree from Sloan in 1987, he spent a decade at MIT raising capital from industry and facilitating technology transfer. David still holds a partial appointment at MIT’s Initiative on the Digital Economy. In 1996 he joined Xerox as Manager of International Sales and Business Development for the Adaptive Products Division before it was sold. In 1998 David joined third party marketing firm Winchester International Group as Managing Director. In 2000 Winchester helped found the Hub Angels, a series of early stage investment funds that invest in the New England region. Hub is currently on Hub Fund VII. David sits on several startup Boards, and is Chairman Emeritus of the Angel Capital Association. He is one of XConomy’s “Top Angel Investors in New England” and the recipient of the Hans Severiens Award. David was educated at Bowdoin College and the MIT Sloan School of Management.

Summary

Takeaways

Angel investing has become a significant segment of the investment ecosystem in the last decade, with the number of angel groups and individual angel investors increasing.
A fund structure for angel investing offers benefits such as shared ownership in portfolio companies, consistent access to capital, and the ability to provide ongoing support to companies.
Supporting first-time CEOs involves helping with day-to-day decisions, providing strategic advice, and finding complementary mentors or board members.
Grit is essential in the startup world, and it can be fueled by competitiveness, curiosity, and a desire to punch above one's weight.
Investing in startups requires thorough due diligence, focusing on the leadership team, market potential, and revenue models.
The COVID-19 pandemic has accelerated the acceptance of remote investing and virtual meetings, but location still plays a role in angel investing.
Personal interests and family time are important for maintaining a balanced life outside of work.

Sound Bites

"The role of angels and what it used to be and what it is now."

"One of the real signs of that is the segmentation in the market."

"If you're the entrepreneur and you've got 20 angels that each invest at $25,000, a fairly high percentage of them feel like they can email and call you."

Links

HUB Angels: https://www.hubangels.com

Please leave us a review: https://podchaser.com/DesigningSuccessfulStartups

Tech Startup Toolkit (book): https://www.manning.com/books/tech-startup-toolkit

Jothy’s website: https://jothyrosenberg.com

The Who Says I Can’t Foundation: https://whosaysicant.org

Jothy’s TEDx talk on disabilities: https://www.youtube.com/watch?v=PNtOawXAx5A

Chapters

00:00 The Evolution of Angel Investing

09:38 The Role of Angels and Investor-Entrepreneur Communication

14:28 Assessing Startup Success and Making Investments

22:55 The Screening Process and Selecting Companies to Present